Seeing Machines' UK£21m Market Cap Fall Books Insider Losses

Insiders who bought US$171.9k worth of Seeing Machines Limited's (LON:SEE) stock at an average buy price of US$0.041 over the last year may be disappointed by the recent 15% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$97.5k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Seeing Machines

The Last 12 Months Of Insider Transactions At Seeing Machines

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Stephane Vedie bought UK£47k worth of shares at a price of UK£0.04 per share. That means that an insider was happy to buy shares at above the current price of UK£0.023. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Seeing Machines insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Seeing Machines is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Seeing Machines Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Seeing Machines. Overall, three insiders shelled out UK£164k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about UK£634k worth of Seeing Machines shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The Seeing Machines Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Seeing Machines stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Seeing Machines has 2 warning signs we think you should be aware of.

Of course Seeing Machines may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.